Core Summary

  • PayPal Holdings and its peer-to-peer payment tool Venmo have completed integrations with three campus payment technology companies, enabling some colleges and universities to accept tuition payments, thereby expanding the use cases of its brand, which is known for merchant payments.
  • In a press release issued on Wednesday, PayPal said that through campus technology companies Illumia, Nelnet Campus Commerce, and TouchNet Information Systems, some colleges and universities will support the use of PayPal and Venmo for tuition payments. The first schools to accept this payment method include Butler University, Kansas State University, and Michigan State University.
  • A PayPal spokesperson said via email: "This is the first time PayPal and Venmo have been directly integrated into schools' payment portals, and students and parents can now choose to use Venmo or PayPal to pay tuition."

In-Depth Analysis

For years, college students and other young groups have been enthusiastic about using Venmo, but PayPal has only recently focused on expanding its use cases. PayPal's former CEO Alex Chriss mentioned that his son used the payment tool during college, but at that time PayPal had not yet established technical connections with universities, so it could not be used for tuition payments.

The integrations with Illumia, Nelnet, and TouchNet, a subsidiary of Global Payments, provide a channel for PayPal and Venmo payments. According to the press release, these three campus technology companies serve thousands of colleges and universities across the United States.

A PayPal spokesperson explained: "For Venmo or PayPal to be used for such payments to commercial entities, they must appear on the official checkout page."

The spokesperson said that some colleges and universities have now launched the new payment options and support cross-border payment functionality.

PayPal's strategy to make payment technology available in more scenarios, especially in higher education, began during Chriss's tenure. Now, the San Jose, California-based company continues to advance related plans under the leadership of new CEO Enrique Lores, who took over the position in March.

Last year, PayPal announced it would handle payments for the Big Ten and Big 12 collegiate athletic conferences, aiming to address payment and campus spending needs for more student athletes. At that time, the company said it was considering offering more services for tuition payments.